Pure wage rent, defined as labor pricing that chronically exceeds market-opportunity cost, is an outcome of rational employer-employee interaction in information-challenged workplaces. It is an essential concept, integral to the analysis of important economic phenomena, consistent with available...

Financial wealth inequality and long-term real interest rates track each other closely over the post-war period. Faced with unanticipated lower real rates, households which rely more on financial wealth must see large capital gains to afford the consumption that they planned before the decline...

We quantify the joint impact of the China shock and automation of labor, across US commuting zones (CZs). To this end, we employ a multi-sector gravity model of trade with Roy-Frechet worker heterogeneity across sectors, where labor input can be automated. Automation and increased import...

This paper investigates the interaction of structural change and the labor share. We use a series of thought experiments that combine theoretical assumptions underlying labor markets in Baumol and Lewis with the accounting of a sectoral decomposition of the labor share. The focus lies on a shift...

Spanish abstract: Se realiza una presentación de la perspectiva teórica de Bhaduri-Marglin (Bhaduri & Marglin, 1990) como alternativa para explicar las diferencias en las trayectorias de crecimiento económico en las modernas sociedades capitalistas como resultado de la interacción entre...

The thesis developed in this paper is that contrary to the claims of its proponents, the main supply-side consequence of neoliberalism was to zap labour, institutionalize worker insecurity, and install an `incomes policy based on fear' in the US economy. Like any successful incomes policy, this...

The causes and consequences of the cyclical fluctuations in the top compensation share (TCS) and top capital income share (TKIS) are studied through the lens of an estimated two-agent New Keynesian model, featuring top and middle-class earners, capital-skill complementarity, and differences in...

The recent shift to remote work raised the amenity value of employment. As compensation adjusts to share the amenity-value gains with employers, wage-growth pressures moderate. We find empirical support for this mechanism in the wage-setting behavior of U.S. employers, and we develop novel...

The recent shift to remote work raised the amenity value of employment. As compensation adjusts to share the amenity-value gains with employers, wage-growth pressures moderate. We find empirical support for this mechanism in the wage-setting behavior of US employers, and we develop novel survey...

The paper considers whether structural reforms have a different impact on adjusted household disposable income (AHDI) compared to GDP, particularly given that while the latter is currently used as the basis for the OECD Economics Department’s framework for evaluating the effect of structural...